BILL NUMBER: SB 138	CHAPTERED  02/18/99

	CHAPTER   3
	FILED WITH SECRETARY OF STATE   FEBRUARY 18, 1999
	APPROVED BY GOVERNOR   FEBRUARY 17, 1999
	PASSED THE ASSEMBLY   FEBRUARY 12, 1999
	PASSED THE SENATE   FEBRUARY 4, 1999
	AMENDED IN SENATE   JANUARY 21, 1999

INTRODUCED BY   Senator O'Connell

                        JANUARY 4, 1999

   An act to amend Sections 18903, 19170.1, and 21465.5 of, and to
add Sections 21362.1, 21573.5, and 22955.1 to, the Government Code,
relating to state employees, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 138, O'Connell.  State Highway Patrol:  memorandum of
understanding.
   (1) Existing law provides that if any provision of a memorandum of
understanding reached between the state employer and a recognized
employee organization representing state civil service employees
requires the expenditure of funds, those provisions of the memorandum
of understanding shall not become effective unless approved by the
Legislature in the annual Budget Act.
   This bill would approve provisions that require the expenditure of
funds of a memorandum of understanding entered into between the
state employer and Unit 5--California Association of Highway
Patrolmen, and would provide that the provisions of that memorandum
of understanding that require the expenditure of funds shall become
effective pursuant to the approval of the Legislature contained in
the bill.
   (2) The State Civil Service Act requires that a general
reemployment list be maintained for each class of state civil service
employees consisting of the names of all persons who have occupied
positions with probationary or permanent status in the class and who
have been legally laid off or demoted in lieu of layoff.  The act
requires that for state employees in State Bargaining Unit 5, 6, 8,
or 16, a general reemployment list be maintained for each entry level
class listing the names of all persons who have occupied positions
with probationary or permanent status in the class and who have been
legally laid off, demoted in lieu of layoff, or transferred in lieu
of layoff.
   This bill would require that for state employees in State
Bargaining Unit 5 the general reemployment list be maintained for
each class, rather than for each entry level class.
   Under the State Civil Service Act, the State Personnel Board is
required to establish for each class of state civil service employees
the length of the probationary period.  The act generally requires
that a state civil service employee serve a probationary period of 6
months, unless the board establishes a longer period of not more than
one year.  Under the act, the probationary period that a state
employee in State Bargaining Unit 6, 8, or 16 is required to serve
upon appointment is not less than 6 months nor more than 2 years.
   This bill would specify that the probationary period that a state
employee in State Bargaining Unit 5 is to serve upon appointment is
not less than 6 months nor more than 2 years.
   (3) The Public Employees' Retirement Law prescribes retirement
benefits for patrol members.
   This bill would increase the service allowance limitation from 80%
to 85% for members of State Bargaining Unit 5 who retire on and
after January 1, 1999, and would establish a new retirement option
consisting of a partial distribution of the present value of the
actuarial amount of retirement allowances for those members.  The
bill would also provide increased basic death benefits for specified
survivors of state members.
   (4) Existing law, the State Employees' Dental Care Act, provides
dental care plan coverage to public employees and annuitants meeting
the eligibility requirements prescribed by the Board of
Administration of the Public Employees' Retirement System.  Existing
law provides that notwithstanding particular provisions of the act,
state employees in State Bargaining Unit 6 may receive a percentage
of the employer's contribution payable for annuitants if the
employees are credited with 10 years of state service.
   This bill would also provide that state employees in State
Bargaining Unit 5 may receive a percentage of the employer's
contribution payable for annuitants if the employees are credited
with 10 or more years of state service.
   (5) The bill would also declare that it is to take effect
immediately as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that the purpose of
this act is to adopt an agreement pursuant to Section 3517 of the
Government Code entered into by the state employer and a recognized
employee organization to make any necessary statutory changes in
health, retirement, salary, or other benefits.
  SEC. 2.  (a) The provisions of the memorandum of understanding
prepared pursuant to Section 3517.5 of the Government Code and
entered into by the state employer and Unit 5--California Association
of Highway Patrolmen, dated ____, and requiring the expenditure of
funds, are hereby approved for the purposes of Section 3517.6 of the
Government Code.
   (b) Notwithstanding Section 3517.6 of the Government Code, the
provisions of the memorandum of understanding described in
subdivision (a) that require the expenditure of funds shall become
effective pursuant to the approval by the Legislature contained in
this act.
  SEC. 3.  Section 18903 of the Government Code is amended to read:
   18903.  (a) (1) For each class there shall be maintained a general
reemployment list consisting of the names of all persons who have
occupied positions with probationary or permanent status in the class
and who have been legally laid off or demoted in lieu of layoff.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 6, 8, or 16.  For each entry
level class there shall be maintained a general reemployment list
consisting of the names of all persons who have occupied positions
with probationary or permanent status in the class and who have been
legally laid off, demoted in lieu of layoff, or transferred in lieu
of layoff.
   (3) Notwithstanding paragraph (1), this paragraph shall only apply
to state employees in State Bargaining Unit 5.  For each class there
shall be maintained a general reemployment list consisting of the
names of all persons who have occupied positions with probationary or
permanent status in the class and who have been legally laid off,
demoted in lieu of layoff, or transferred in lieu of layoff.
   (b) Within one year from the date of his or her resignation in
good standing, or his or her voluntary demotion, the name of an
employee who had probationary or permanent status may be placed on
the general reemployment list with the consent of the appointing
power and the board.  The general reemployment list may also contain
the names of persons placed thereon by the board in accordance with
other provisions of this part.
  SEC. 4.  Section 19170.1 of the Government Code is amended to read:

   19170.1.  (a) Notwithstanding Section 19170 for state employees in
State Bargaining Unit 5, 6, 8, or 16, the board shall establish for
each class the length of the probationary period.  The probationary
period that shall be served upon appointment shall be not less than
six months nor more than two years.
   (b) The board may provide by rule:  (1) for increasing the length
of an individual probationary period by adding thereto periods of
time during which an employee, while serving as a probationer, is
absent from his or her position; or (2) for requiring an additional
period not to exceed the length of the original probationary period
when a probationary employee returns after an extended period of
absence and the remainder of the probationary period is insufficient
to evaluate his or her current performance.
  SEC. 5.  Section 21362.1 is added to the Government Code, to read:

   21362.1.  Notwithstanding Section 21362, the limitation on the
service retirement benefit shall be 85 percent for state patrol
members who retire on and after January 1, 1999.  This provision may
also be applied to state patrol members in related supervisory or
confidential positions, provided that the Department of Personnel
Administration has approved this inclusion in writing to the board.
  SEC. 6.  Section 21465.5 of the Government Code is amended to read:

   21465.5.  Section 21465 shall also apply to state patrol members
in State Bargaining Unit 5 and state peace officer/firefighter
members in State Bargaining Unit 8 who retire on and after January 1,
1999, provided that a memorandum of understanding has been agreed
upon by the state and the recognized employee organization to become
subject to that section.  That section shall also apply to state
patrol members and state peace officer/firefighter members in related
supervisory and confidential positions, provided that the Department
of Personnel Administration has approved their inclusion.
  SEC. 7.  Section 21573.5 is added to the Government Code, to read:

   21573.5.  (a) In lieu of benefits provided in Section 21571,
21572, or 21573, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
   (1) The surviving spouse of the member who has the care of
unmarried children, including stepchildren, of the member who are
under age 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after the
attainment of that age.
   (2) The guardian of surviving unmarried children, including
stepchildren, of the member who are 22 years of age or are so
incapacitated.
   (3) The surviving spouse of the member, who does not qualify under
paragraph (1).
   (4) Each surviving parent of the member.
   (b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
   (1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand five
hundred dollars ($1,500) per month is there is one child or one
thousand eight hundred dollars ($1,800) per month if there are two or
more children.  If there also are children who are not in the care
of the surviving spouse, the portion of the allowance payable under
this paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of seven hundred fifty dollars
($750) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
   (2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren of
the deceased member who are under age 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
   (A) If there is only one child, the child shall be paid seven
hundred fifty dollars ($750) per month.
   (B) If there are two children, the children shall be paid one
thousand five hundred dollars ($1,500) per month divided equally
between them.
   (C) If there are three or more children, the children shall be
paid one thousand eight hundred dollars ($1,800) per month divided
equally among them.
   (3) A surviving spouse who has attained or attains the age of 62
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death, shall be paid seven hundred fifty dollars ($750) per month.
No allowance shall be paid under paragraph (1), or while an allowance
is being paid under subparagraph (C).  No allowance shall be paid of
paragraph (2).  The allowance paid under this paragraph shall be
three hundred dollars ($300) per month while an allowance is being
paid under subparagraph (B) of paragraph (2).
   (4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member's death shall be paid seven hundred fifty dollars ($750) per
month.
   (c) "Stepchildren" for purposes of this section shall include only
stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
   (d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1999, as well as to a
surviving spouse who has attained age 62 prior to January 1, 1999.
All assets and liabilities of all state agencies and their employees
on account of benefits provided to beneficiaries specified in the
subdivision shall be pooled into a single account.  The board shall
transfer from the reserve for 1959 survivor contributions retained in
the retirement fund, an amount sufficient to pay the cost of the
increased benefits provided by this subdivision for beneficiaries of
members who died on or before December 31, 1998.
   (e) This section shall not apply to beneficiaries with respect to
the death of a state member occurring on or after January 1, 1999,
unless provided for in a memorandum of understanding reached pursuant
to Section 3517.5, or authorized by the Director of Personnel
Administration for classifications of state employees that are
excluded from, or not subject to, collective bargaining.  The
memorandum of understanding adopting this section shall be
controlling without further legislation, except that if those
provisions of a memorandum of understanding require the expenditure
of funds, those provisions shall not become effective unless approved
by the Legislature as provided by law.
   (f) The rate of contribution for the state employer shall be
calculated using a method determined by the board.  Surplus assets
shall be applied to reduce the rate of the employer contribution.
Once the surplus assets have been fully utilized, under a uniform
amortization schedule to be established by the board, and the total
required amount exceeds a monthly premium of four dollars ($4),
including the amount required of the member under Section 21581, the
member and employer shall thereafter evenly share the required
monthly premium.
  SEC. 8.  Section 22955.1 is added to the Government Code, to read:

   22955.1.  (a) Notwithstanding Sections 22953 and 22954, an
employee in State Bargaining Unit 5 who becomes a state member of the
Public Employees' Retirement System after January 1, 1999, and who
is included in the definition of state employee in subdivision (c) of
Section 3513 shall not receive any portion of the employer's
contribution payable for annuitants, pursuant to Sections 22953 and
22954, unless the employee is credited with 10 years or more of state
service, as defined by this section, at the time of retirement.
This subdivision shall have retroactive application to state
employees in State Bargaining Unit 5 who become a state member of the
Public Employees' Retirement System after January 1, 1999, but prior
to the effective date of this section.
   (b) The percentage of employer's contribution amount payable for
post retirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
member's completed years of state service at retirement as shown in
the following table:


                                               Percentage of
    Credited Years of Service              Employer Contribution
    10 ................................             50
    11 ................................             55
    12 ................................             60
    13 ................................             65
    14 ................................             70
    15 ................................             75
    16 ................................             80
    17 ................................             85
    18 ................................             90
    19 ................................             95
    20 ................................            100

   (c) This section shall only apply to state employees who retire
for service.
   (d) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
   (e) For purposes of this section, "state service" means service
rendered as an employee or an appointed or elected officer of the
state for compensation.  In those cases where the state assumes or
has assumed from a public agency a function and the related
personnel, service rendered by that personnel for compensation as
employees or appointed or elected officers of that local public
agency shall not be credited, at retirement, as state service for the
purposes of this section, unless the former employer has paid or
agreed to pay the state agency the amount actuarially determined to
equal the cost for any employee dental benefits that were vested at
the time that the function and the related personnel were assumed by
the state.  For noncontracting local public agencies the state
department shall certify the completed years of local agency service
to be credited to the employee to the Public Employees' Retirement
System at the time of separation for retirement.
   (f) Whenever the state contracts to assume a local public agency
function, completed years of service rendered by the personnel for
compensation as employees or appointed or elected officers of the
local public agency shall be credited as state service only upon a
finding by the Department of Finance that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to compensate the state fully for post retirement dental
benefit costs for those personnel.
   (g) This section shall not apply to employees of the California
State University or the Legislature.
  SEC. 9.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for the provisions of this act to be applicable as soon
as possible in the 1998-99 fiscal year, and so facilitate the orderly
administration of state government at the earliest possible time, it
is necessary that this act take effect immediately.
